Audax Private Equity Announces Agreement to Sell Lifemark Health Group to Loblaw Companies Limited

MAR 2022

Audax Private Equity (“Audax”) today announced that it has entered into a definitive agreement to sell Lifemark Health Group (“Lifemark” or the “Company”), a leading provider of physiotherapy, rehabilitation, and medical assessments in Canada, to Loblaw Companies Limited (TSX: L) ("Loblaw").

Headquartered in Toronto, ON, Lifemark is a leading provider of outpatient physiotherapy, massage therapy, occupational therapy, chiropractic, mental health, and other ancillary rehabilitation services. With over 20 years of service, Lifemark is one of the largest and most trusted providers in Canada. As a national healthcare company, Lifemark employs over 5,000 highly trained clinicians, medical experts, and team members in over 300 locations across Canada.

Since partnering with Audax in December 2015, Lifemark has completed over 50 acquisitions, broadened its service offering, and significantly expanded its national footprint. In partnership with Audax, Lifemark also invested heavily in the organic growth of its platform, systems, and key talent to support and sustain continued success.

“Peter and the Lifemark team created a phenomenal business built on the foundation of excellent clinical service,” said Keith Palumbo, Managing Director at Audax Private Equity. “The outpatient physical therapy industry remains highly fragmented and vast, and we’re very proud of the growth we were able to achieve at Lifemark through facility utilization gains, geographic expansion, new services, and acquisitions. We wish them all the best as they continue their journey with Loblaw."

“At Lifemark, we continually look for the most impactful ways to support Canadians on their healthcare journey, and we are grateful to our partners at Audax for helping us to invest in and develop opportunities that advance physiotherapy and rehabilitation services in Canada,” said Peter Stymiest, Chief Executive Officer of Lifemark Health Group. “We look forward to what the future holds for our patients, clients, and team in partnership with Loblaw.”

The sale of Lifemark is subject to regulatory approvals and other customary closing conditions. The transaction is expected to close in the second quarter of 2022.

Harris Williams is serving as financial advisor and Blake, Cassels & Graydon LLP and Kirkland & Ellis LLP are acting as legal advisors to Audax Private Equity.